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Pyramid Scheme MMM Kenya Collapses as Founder Mavrodi Dies

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MMM Kenya

MMM Kenya, a local affiliate of MMM Global, is in a limbo after the death of its founder Sergey Mavrodi. Mavrodi, who had been operating the dubious money doubling scheme online, reportedly passed away after a heart attack last Sunday, leaving thousands of his victims with worthless “mavros” and hundreds of millions of shillings lost.

Although the MMM pyramid scheme had already crumbled in countries such as Nigeria and South Africa, MMM Kenya continued its operations enticing thousands of people to pay money to strangers they interacted with online.

The Man: Sergey Mavrodi

Mavrodi was a renowned Russian fraudster who was found guilty in 2007 of swindling money from 10,000 Russian investors who lost more than $4 million and was sentenced to 4.5 years in prison. After his release in 2011, the MMM Ponzi scheme resurfaced only that now Mavrodi’s target market became the African continent. In 2015, MMM South Africa was established, promising participants a 30 percent return on their investment and bitcoin became the payment option of choice for the scheme.

The Ponzi scheme would later in 2016 spread to other African countries such as Kenya, Ghana, Nigeria and Zimbabwe.

Media reports say that the 62-year old died of a heart attack after a short complaint of chest pain and weakness. Moskovsky Komsomolets, a Moscow newspaper reported that “Mavrodi was hospitalised in the 67th City Hospital. He could not be saved – he died this morning.”

According to a statement on their website, MMM Kenya administrators said “they have put the Internet-based infrastructure on “pause” mode, leaving all those in possession of “mavros” – the pseudo-currency sold by Mavrodi – unable to do anything with it. As such, those with money in the pyramid scheme will be unable to withdraw anything. The statement went on to say: “In the near future, the administration will take a decision concerning MMM’s future and report on it officially.”

MMM Kenya Membership

The common question that was asked of any new recruit interested in the pyramid scheme was: “How much money do you need to be absolutely happy?” MMM Kenya has recruiting agents who would then entice the new members into meetings and ask them to sign up so as to get financial assistance from other new members. The new recruits would then be asked to donate money to the “needy” – the older members – and, in turn, they would earn points in MMM’s (fictitious) digital currency. In the scheme, the more a person gave or the more an old member convinced new members to join, the more points – known as mavros – they earned which they could end up withdrawing as money.

According to the Daily Nation, those investing in the Ponzi scheme were also promised a 30 percent return on their investment and higher returns if they helped members within the scheme that needed financial aid. And the only way that MMM Kenya would survive is if more members signed up. If there is an imbalance between the number of new recruits and those seeking financial aid, the scheme would collapse. This was the case in Nigeria when the number of those seeking help surpassed that of those donating.

CBK Warning

The indefinite “pause” of the MMM Kenya operations comes two months after Patrick Njoroge, the Central Bank of Kenya Governor issued a warning to those investing in digital currencies like bitcoin and Mavrodi’s Mavros that it was a bubble and they should be ready to lose all their money.

The CBK notwithstanding, the operations of MMM in Kenya continued with thousands falling victim to the scheme with a promise of getting high returns on their investment. As Kenyans who have invested in the pyramid scheme await for a way forward from the company, it is only a matter of time before they can start counting their losses.

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Crypto.com Introduces Crypto Earn and Crypto Credit

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Crypto.com

Cryptocurrency platform Crypto.com has introduced Crypto Earn and Crypto Credit to enable users to earn interest on their coins and borrow by using digital currency as collateral.

Crypto Earn And Crypto Credit

Crypto Earn is a financial product that allows users to earn as much as eight percent per annum in interest on their cryptoasset holdings.

Crypto.comTo do this, users deposit digital assets into Crypto Earn through the Crypto.com app and then begin accumulating interest each day through their preferred cryptocurrency. To get started with Crypto Earn, users will have bitcoin, Paxos, and TrueUSD to choose from, according to a company press release.

Crypto.com is offering users two fixed periods namely one-month and three-month terms to earn interest on digital assets. The company will soon provide users with a flexible holding term. With Crypto Earn, you can also withdraw and deposit coins at no fees and spend what you earn.

Crypto Credit gives users instant loans with bitcoin as collateral. Users are free from fixed repayment schedules, monthly fees, payment deadlines, and late fees which financial institutions such as banks often impose. Users, therefore, enjoy a flexible repayment schedule in the twelve months from the beginning of the credit term.

Furthermore, users owning MCO tokens staked in the app receive a special rate of eight percent per annum. Users can use their loans to buy more cryptocurrencies on the app or they can spend it on the MCO Visa Card with cash back of up to five percent.

Other benefits of using Crypto Credit are that you do not require credit checks and that you can get the credit limit you want.

“Crypto Earn offers the most attractive interest rates in the market today. With the MCO Visa Card and Crypto Credit, we are uniquely positioned to do it while maintaining sustainable unit economics. MCO Visa Card, Crypto Earn, and Crypto Credit together form a powerful product suite that nobody else in the industry has today. We have never been more excited about the potential of our platform and look forward to continue scaling it globally later this year,” said Kris Marszalek, co-founder and CEO of Crypto.com.

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Different Kinds of Bitcoin Trading Strategies You Should Know About

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trading strategies you should know

Bitcoin has been around for over 10 years now. There are a lot of things that have evolved with it over the years, including how easy and secure it is to buy, the different ways we can buy it, and the various bitcoin trading strategies that people use now.

There are a lot of bitcoin trading strategies now that it could intimidate a lot of newbies trying to get into bitcoin. The truth is, each strategy caters to a specific kind of trader so if you’re new, these strategies might be worth looking into before you invest any kind of money.

Different Strategies

To help get you started on choosing the kind of strategy you’re looking for, here are the two most common strategies that bitcoin traders use:

HODLing

You may have seen this slang around while doing your research. “HODL” refers to holding your position. It was created in 2013 when bitcoin’s price was dropping but a certain user decided not to sell his shares. He meant to write “HOLDing” but ended up making a typo instead: “HODLing”. It eventually caught on and people decided to give it a new meaning: “Holding On for Dear Life.”

The HODLing strategy refers to the holding of your bitcoins in hopes that your investment will grow over time. To start HODLing, buy bitcoins in bulk when the price is low and then keep it close while watching the crypto market. People can hold their positions from weeks to months to even more than a year. It’s the easiest and one of the more common trading strategies.

Day-trading

BTCDay-trading is another very common form of trading in the bitcoin world. The strategy refers to closing all your positions before the day ends. It involves executing long and short trades to capitalize on the market price of that day. Basically, this prevents having open positions overnight by finishing all your trades within the day.

It’s a more technical form of trading and it requires your full attention and a lot of your time. You’ll need to keep a close eye on all your positions and possibly watch multiple screens to do so. It requires a high degree of focus as well as a good knowledge of how the crypto industry works.

Just getting started

These two trading strategies are literally the most common forms of trading. There are so many more strategies such as swing trading and alt-coin filipping that you’ll need to learn but these two should get you started on your bitcoin journey.

Now, all you’ll have to do is decide on which of the two suits you more. Be sure to figure out your game plan before getting into bitcoin at all and your style should follow.

This guest post was contributed by cryptocurrency education and news platform WeAreCryptos. 

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Ghana’s Securities Exchange Commission (SEC) Warns Public About Investing in Crypto

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In a recent statement, the SEC of Ghana has warned the populace against investing in cryptocurrency and crypto-related investment schemes. This warning comes amidst a growing concern of the Security and Exchange Commission (SEC) about how Ghanaians are diving head first into the cryptocurrency market.

SEC Warns About Crypto

The Director General of the SEC, Rev. Daniel Ogbarmey Tetteh, signed an official statement released by the Commission that cautions the general public about cryptocurrency trading and all crypto-related activities as these are not regulated by the Securities Exchange Commission reports News Ghana

“[Cryptocurrency investments] offered by unregistered and unlicensed entities on digital online trading platforms with promises of high returns on investment are not sanctioned nor registered by the SEC”, the statement read.

The Commission’s statement further read:

Ghana SEC“The SEC wishes to inform the general and investing public that none of these cryptocurrencies is recognised as currency or legal tender in Ghana. The platform on which they are traded are not also licensed nor regulated by the SEC. The SEC would like to make it clear that it does not currently regulate these types of products offerings and their accompanying online trading platforms or Exchanges. Members of the general public who are investing or intend to invest in such currencies or assets may be doing so at their own risk and can in no way be protected under the Securities law regime in Ghana.”

Currently, digital asset trading remains a regulatory and legal grey area in the West African nation. Whereas the SEC has stated that it is presently not in support of or regulating cryptocurrencies, it also has not stated that cryptocurrency trading is illegal.

The regulator only mentions that they are “unregistered, unlicensed, and unregulated under the Securities Law of Ghana“. Thus, this can be very much regarded as a “disclaimer” on the part of the regulatory body to the public to sensitise them that trading in cryptocurrencies in the country presently is only done at one’s own risk.

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